In commercial real estate agency today, you still find clients that want the highest price or rent for their property regardless of current market conditions locally. Unless the client owns an exceptional property, it is unlikely that any price or rent offer will reach their required benchmark.
An overpriced property gets quite stale on the market quickly. The buyers and tenants in the local area know what the real prices are and will not generally make an offer on something that is beyond market evidence in price or rental. If your client chooses to list at a high price, they risk destroying any enquiry that could have come to them. You can also be wasting your time.
The next question will be whether you want to take on an overpriced listing. Some agents will do that for the chance of controlling the stock and conditioning the client. It’s your choice, but you do not want to be known as the agent that will list anything at any price. You also do not want to be known as the agent that can list and not covert the listing to a finalised transaction.
Here are some tips to help you with overpriced listings and clients that refuse to listen to common sense:
Make sure that you are talking with the real decision maker. In corporate commercial real estate it is not unusual to have a ‘middle manager’ Realtor Tips 2019 make the first enquiries or approach. Respect their position and recognise that they could be talking with key people behind the scenes.
Inspect the property with the client so you can both discuss the attributes of the property as you see them today and in the current market.
Get the client to tell you the history of the property and why they purchased it. Also ask the client to tell you why they think someone should buy or rent the property. The comments will give you some leverage to discuss the current market today.
Give some facts and information regards the existing property market with some real focus on comparable properties that exist on the market today. Compare those properties to those that did sell or lease. The price or rent differentials will be important.
Show the client how a good property should be marketed today. If they want to take their property to the market then they should provide you with a vendor paid marketing campaign and an exclusive listing. In only that way can you build the levels of inspection and enquiry that the property deserves.
Do not be too eager to jump into an overpriced listing. Consider all of your options before you move ahead and balance those Investing In Logistics Real Estate options against the motivations of the client. Do not step into the listing unless you believe that you can service it well.